Wednesday, Sweden's Finance Minister Anders Borg lowered GDP estimates for this year and the next two years as economic crisis lowered demand.

The ministry now expects the economy to contract 4.2% in 2009, a sharp revision from its December forecast of a 0.8% decline. It lowered 2010 growth outlook to just 0.2% from 1.5% growth initially projected. Growth for 2011 is seen at 2.4%, down from 3% expansion estimated previously.

Further, he noted that unemployment is set to rise to 8.9% this year and will continue to increase until 2011 to reach to 11.7%.

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